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The newly launched fund is aiming to capitalise on the recent surge in the Baltic States commercial and residential property values as their economies catch up to the more mature EU economies.

Stellar is working in partnership with Baltic property specialist Bristol & Stone and Capital City Developments to assemble a diversified portfolio aimed at providing asset growth over the short to medium term.

The fund will explore planning plays, development and land trading opportunities as well as more conventional property investments.

Stellar have been touting the fund throughout the UK since May and said demand had been much larger then expected.

This suggested investors backed the view the Baltic real estate market would outperform the UK market by 15 per cent over the next two years.

The fund has started life with six properties and was seeking to raise around £10m. It aims to give annual total returns to investors of 15 per cent.

Jonathan Gain, chief executive of Stellar Asset Management, said: "There is a healthy appetite for non-UK property investments.

"We have been able to successfully demonstrate that there is value to be found in these specialist property markets which we believe will considerably outperform the UK in the short to medium term."

Min investment: £25000. 

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